Japan's top labour union group urges government to stabilise forex

Core Viewpoint - The chief of Japan's largest trade union umbrella group, Rengo, is urging the government to implement economic policies aimed at stabilizing foreign exchange rates, as the weak yen is contributing to rising inflation through increased import costs [1][2]. Group 1: Economic Impact - The yen has depreciated significantly against major currencies, reaching an 18-month low of 159.45 per U.S. dollar, the weakest level since July 2024 when Japan last intervened to support the currency [2]. - Rengo's chief, Tomoko Yoshino, emphasized that the current depreciation of the yen is exacerbating inflation due to higher import costs [2]. Group 2: Inflation and Wage Negotiations - Prices in Japan continue to exceed the government's 2% inflation target, prompting Rengo to call for macroeconomic management that stabilizes both prices and exchange rates [3]. - Rengo, representing 7 million members, has set a target for wage increases of 5% or more for the upcoming 2026 spring pay talks, following an average wage hike of 5.25% achieved last year, marking the largest increase in 34 years [3].